In their first Summit meeting spread over two hours at the White House, the two leaders also agreed that the two countries will take steps to disrupt financial and tactical support to these terror outfits.

After the meeting between Modi and Obama, officials made it clear that India was not going to join "any coalition" in fight against terrorism in West Asia. Likewise, they clarified that a trilateral partnership agreed on Afghanistan, would be developmental in nature and not military cooperation.

They also said that the "joint and concerted efforts" on dismantling safe havens for terrorist groups and criminal networks do not mean that India and the US were going to launch operations but carry out any UN-mandated task.

Modi and Obama, whose discussions covered a broad range of issues including cooperation in defence, security, energy economic and space, took a significant decision to break the impasse on implementation of civil nuclear deal.

"We are serious about resolving issues on both sides in civil nuclear energy cooperation. This is important to India for meeting energy security needs," Modi said.

An inter-agency contact group will be set up to address the issues of liability, administrative and technical issues.

From the Indian side, agencies like DAE, MEA and Finance Ministry will be involved.

"We are setting up an inter-agency contact group to be able to resolve all issues that are outstanding and hindering the rapid deployment of US-origin nuclear reactors in India, that includes by liability, it includes administrative issues and it includes technical issues," Vikram Doraiswami, Joint Secretary (Americas), in the MEA, told reporters while briefing on the meeting between Modi and Obama.

Doraiswamy said while India was not going to join any coalition against terrorism, the two sides had agreed on the need to deal with "travellers of terrorism" -- radicalised people who travel for participating in terror activities in West Asia.

"This is a very major issue for us," he said.

On Afghanistan, Modi and Obama discussed the political, security and economic transition which is underway. "We continue to be very supportive of the transition process in Afghanistan," the Indian official said.

Holding that India and the US are natural global partners, the two countries extended defence cooperation foranother 10 years. Modi invited US companies to participate in defence manufacturing sector in India, which has recently raised the FDI cap from 26 to 49 per cent.

Expanding on the strategic partnership, Obama said India meets the standards of the Missile Technology Control Regime (MTCR) and is "now ready" for the membership of the elite Nuclear Suppliers Group (NSG), a 48-member body which controls global nuclear trade.

Obama also reaffirmed US support for India's membership of the expanded UN Security Council and backed it for "voice and vote" in international financial institutions like IMF and World Bank.